Pakistan Allocates 2,000 Megawatts for Bitcoin Mining and AI Centers

Pakistan has allocated 2,000 megawatts of surplus electricity to support Bitcoin mining and artificial intelligence centers, marking a significant move in its digital transformation agenda. This initiative, driven by the Pakistan Crypto Council and supported by the Ministry of Finance, aims to attract foreign investment and position the country as a key player in the tech economy.

The first phase of the project involves directing excess power to infrastructure supporting crypto mining and AI development. This move is expected to bring billions in capital inflows and create high-skilled jobs nationwide. Finance Minister Muhammad Aurangzeb confirmed that foreign companies have already begun exploring partnership opportunities, with several delegations visiting in recent months.

To support adoption, the Ministry of Finance has introduced tax incentives for AI firms and waived import duties for Bitcoin mining hardware. These benefits are part of a wider strategy to build confidence among investors and signal regulatory readiness. Bilal Bin Saqib, head of the Pakistan Crypto Council, called the move a “turning point” for the nation’s digital economy. Saqib had earlier proposed the idea of utilizing untapped energy reserves for crypto mining during the Council’s March 21 meeting, attended by key regulators and government officials.

Saqib emphasized that with proper oversight, Pakistan could emerge as a regional hub for blockchain innovation and AI development. The second phase of the plan involves integrating renewable energy into these operations, aligning with broader sustainability goals. Officials noted that this approach seeks to balance technological growth with environmental concerns.

As part of the broader overhaul, the government recently endorsed the creation of the Pakistan Digital Assets Authority (PDAA). This regulatory body will oversee licensing, tokenization of national assets, and the development of decentralized finance applications. It will also play a central role in managing the monetization of excess electricity through regulated Bitcoin mining.

Pakistan currently ranks ninth globally in crypto adoption, driven largely by retail usage. Last month, World Liberty Financial (WLFI), a decentralized finance (DeFi) project, signed a Letter of Intent (LOI) with the Pakistan Crypto Council to promote blockchain adoption and DeFi growth across Pakistan. The agreement was formalized during a high-level meeting between WLFI co-founders and senior government officials. The partnership aims to accelerate blockchain innovation by establishing regulatory sandboxes to test blockchain-based financial solutions.

Pakistan’s Finance Ministry is taking steps toward formal cryptocurrency regulation, which could significantly change the country’s historically cautious stance on digital assets. The delegation included notable figures who have pledged significant funding to Pakistan, along with tech entrepreneurs and blockchain consultants. This initiative underscores Pakistan's commitment to leveraging its surplus electricity to drive technological advancement and economic growth.